Since our last newsletter, ESMA updated its Q&A on the Market in Financial Instruments Directive 2014/65/EU of 15 May 2014 (“MiFID II”) and on the Markets in Financial Instruments Regulation 600/2014 of 15 May 2014 (“MiFIR”), on the following topics:
• Q&A on MiFID II and MiFIR transparency topics;
• Q&A on MiFID II and MiFIR market structures topics; and
• Q&A on MiFIR data reporting.
The new Q&As provide clarification on the following topics:
• The use of pre-arranged transactions for non-equity instruments (Amendment to an existing Q&A);
• The hedging exemption of Article 8 of MiFIR;
• The treatment of constant maturity swaps;
• The application of the tick size regime to periodic auction systems; and
• The clarifications in relation to the requirements for submission of reference data under MiFIR. In particular, the Q&As relate to reporting obligations for financial instruments without a defined expiry date.
CSSF CIRCULAR 19/723
On 18 July 2019, the CSSF published CSSF Circular 19/723 (the “Circular”) transposing ESMA guidelines on the application of the definitions of commodity derivatives in Sections C6 and C7 of Annex I of MiFID II (the “Guidelines”) into Luxembourg regulations.
The Guidelines relate to the application of the definitions of commodity derivatives and their classification under points 6 and 7 of Section C (Financial Instruments) of Annex I of MiFID II – they update the guidelines adopted by ESMA in October 2015 to adapt them to the new MiFID II regulatory framework without changing the substance.
The Circular (which repeals CSSF Circular 15/615 of 11 June 2015) entered into force on the day of its publication, 18 July 2019.